Giving credence to Muhammad Yunus, microcredits can be the panacea to “‘put poverty to the museum‘“. (Haryanti 2010: 2) The native Bangladeshi and founder of Grameen bank, the biggest microfinance institute (MFI) in the world, is regarded by the advocates of microcredits as the symbol for their success. In 2006 he won the Nobel Peace Prize for “[…] pioneering efforts to provide financial services to the poorest of the poor.“ (Kota, June 2006)
Honouring the father of microfinance has even increased the promising reporting by the media on mostly individual success stories. The apparently positive and widely cited effects of microcredits are job creation and raising incomes in the poorest communities, helping to empower especially women, and generally setting off a “bottom up” social and economic development process. However, critical voices fault that the adoption of the microfinance approach by many NGOs led to a shift away from their original social mission, sacrificing it to commercialization.
By the example of Bangladesh, the “centre of microfinance”, this paper aims to provide a Neo-Gramscian critique of microcredits as an instrument of development aid. Being a Marxist-oriented theory, Neo-Gramscianism would highly oppose the popular statement that microcredits can be an appropriate means to sustainably empowering the poor. The central argument of this critique will therefore be that providing the poor with microcredits and making them bankable nurtures asymmetrical power relations and neoliberalism which finally empowers the Western-dominated capitalist system, not the poor.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Microcredits - A Definition
- Bangladesh, the Centre of Microcredits
- Bangladesh's Economic Environment
- The Role of NGOs and Microfinance in Bangladesh
- The Fundamentals of Neo-Gramscianism by Robert W. Cox
- The Basic Ideas of Antonio Gramsci
- Further Development by Robert W. Cox
- The Process of Trasformiso....
- NGOs as Transnational Communities
- Assimilation of Third World Protagonists
- Microcredits' Goal of Women Empowerment
- Empowering Women Through Entrepreneurship
- Household Control
- Focus on Income-Generating Activities
- Microcredits' High Interest Rates
- Subsidization of Microcredits as Possible Solution
- The Group Lending Factor
- Microcredits - Suitable to Reach the Poorest?
- Microcredits' Neoliberal Environment
- In Pursuit of the Hegemonic Policy
- Multinationals' Advantage of Investing in Microcredit Programmes...
- NGOs' Dependence on the International Capital Market
- Third World Countries' Lack of Participation
- Microcredits' Failure to Engage in Social Mobilization
- NGOs' Counter-Hegemonic Potential
- Better Performance of Social Mobilization NGOs
- The Gender and Food Caravan
- In Pursuit of the Hegemonic Policy
- Conclusion
- The Neo-Gramscian Verdict
- Strengths and Weaknesses of Neo-Gramscianism
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to provide a Neo-Gramscian critique of microcredits as an instrument of development aid, specifically focusing on the example of Bangladesh. The main objective is to analyze whether microcredits, often touted as a solution to poverty, actually empower the poor or contribute to the strengthening of neoliberal power structures.- The role of microcredits in empowering women in Bangladesh
- The potential for microcredits to reach the poorest segments of the population
- The impact of microcredit programs on the development of neoliberal structures in Bangladesh
- The effectiveness of microcredits as a tool for social mobilization and counter-hegemonic action
- The limitations of Neo-Gramscianism in analyzing development outcomes
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the concept of microcredits and their potential as a tool for poverty alleviation. It highlights the success stories of microfinance institutions, particularly Grameen Bank, and the potential for microcredits to empower women and drive economic development. However, it also raises critical concerns about the shift of focus from social mission to commercialization within the microfinance sector.
- Microcredits - A Definition: This chapter provides a definition of microcredits, focusing on their role in supporting microenterprises and promoting income-generating activities. It highlights the popularity of group lending as a method for microcredit distribution and discusses the rapid growth of the microfinance sector.
- Bangladesh, the Centre of Microcredits: This chapter examines the economic environment in Bangladesh, highlighting the country's dynamic economic growth despite high poverty rates. It discusses the role of microfinance institutions in Bangladesh and raises questions about their effectiveness in reaching the poorest segments of the population.
- The Fundamentals of Neo-Gramscianism by Robert W. Cox: This chapter introduces the Neo-Gramscian theoretical framework, which provides a critical lens for analyzing power dynamics in the global political economy. It explores key concepts such as hegemony, the role of civil society, and the process of transformation.
- Microcredits' Goal of Women Empowerment: This chapter explores the potential of microcredits to empower women through entrepreneurship, household control, and income-generating activities. It also discusses the challenges associated with high interest rates and the potential for subsidization.
- Microcredits - Suitable to Reach the Poorest?: This chapter examines the effectiveness of microcredits in reaching the poorest segments of the population, considering the potential for replication of findings and the use of waterfall strategies to overcome micro-debt.
- Microcredits' Neoliberal Environment: This chapter analyzes the role of microcredits within a neoliberal environment, exploring their potential to contribute to the strengthening of hegemonic power structures. It examines the influence of multinational corporations, the dependence of NGOs on international capital markets, and the limited participation of third-world countries in the microfinance sector.
Schlüsselwörter (Keywords)
This paper focuses on the analysis of microcredits, particularly in the context of Bangladesh, through a Neo-Gramscian lens. Key terms and concepts include microfinance, development aid, poverty alleviation, women empowerment, neoliberalism, hegemony, social mobilization, and civil society. The analysis explores the potential for microcredits to empower the poor while simultaneously examining their impact on the strengthening of neoliberal power structures and the limitations of Neo-Gramscianism in analyzing development outcomes.- Quote paper
- Theresa Hübscher (Author), 2016, Microcredits. A Neo-Gramscian Critique by the Example of Microcredits in Bangladesh, Munich, GRIN Verlag, https://www.grin.com/document/344414
